When Warren Buffet brought a railroad he know what he was doing,for railroads today are great business,Why? Because fuel cost less with railroads then trucks and airplane are somewhat limited in what they can deliver and capacity.Also the number railroads are limit maybe 10,if that,for whole nation and region in nature.So like in Eastern United States only two railroads cover the whole region:Northern Southern and CSX.I particularly like CSX a buy for it's stock,Barron's this week as story on CSX.The stock is in my opinion undervalued,also article agrees with me because of ties to Coal Industrial,which under pressure because a cheap and plentiful Natural Gas and Obama government's war on coal.But article points out CSX is doing good job in cutting cost and growing other business beside Coal.I will also point out CSX,is very friendly shareholder company"it buys back stock,pays a good dividend and not that long ago had 3 to 1 split.
Last week on Bloomberg T.V Bruce Berkowitz(not to be confuse with the Son of Sam) recommended Bank of America as stock stated the up side it great.Curious David Tepper believe in Citigroup.Of Bank of America is domestic play Citigroup is international,by the way,I think both are under valued.
No comments:
Post a Comment